BatchNFTis updated with a serial number, it needs to be approved by a Toucan Verifier, a trusted member of the Toucan community. This step is required to protect against fraudulent inputs and is dependent on human action and trust, for now. However, there are ways to automate this process in the future, e.g. with a decentralized arbitration service like Kleros managing disputes, which we are exploring.
Once the correctness of the serial number input is confirmed by a Toucan Verifier, the state of the
BatchNFTchanges to approved and is now a fully tokenized batch of carbon credits that can be sold on NFT marketplaces or used as collateral in DeFi lending markets 🥳
However, for many other use cases—such as sending a fraction of a credit or creating carbon references tokens—NFTs can be a bit unpractical. This is why we think most users will want to take at least one more step: to fractionalize the batch NFT into fungible TCO2 tokens.